SEC Commissioner Peirce Critiques Proposed Custody Rules for Advisers
Commissioner Hester Peirce issued a statement on proposed SEC custody rules covering investment advisers, regulated funds, and crypto assets.
Securities and Exchange Commission Commissioner Hester M. Peirce released a formal statement addressing proposed regulatory changes to custody rules governing investment advisers, regulated funds, and cryptocurrency holdings, signaling notable reservations about the direction of the rulemaking.
Peirce, a Republican commissioner known for her dissenting positions on crypto regulation, characterized the proposed framework with pointed language, describing the rulemaking process as a "roller coaster ride" — suggesting the complexity and turbulence she sees in the SEC's approach to updating custody requirements across traditional and digital asset classes.
The proposed rules would affect how investment advisers and regulated funds safeguard client assets, with a separate component targeting the custody of crypto assets — an area that has drawn intense scrutiny from regulators, industry participants, and lawmakers as digital assets continue to occupy an uncertain legal and regulatory space in the United States.
Peirce has previously been a vocal critic of what she describes as the SEC's regulation-by-enforcement approach to cryptocurrency, and her statement appears consistent with that broader posture. Her public dissent adds to an ongoing debate within the Commission over how aggressively and through what mechanisms the SEC should extend its oversight into digital asset custody arrangements.
The statement underscores persistent internal tensions at the SEC over crypto policy even as the agency moves forward with formal rulemaking. Continue reading at Speeches and Statements.
